PS3 scheduled for $100 price drop to $499.99 after E3?

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[quote name='Plinko']Good move by Sony.

I haven't read the whole thread so my thoughts may have been covered elsewhere, but I can imagine Sony is extremely angry that this got out so early for two reasons:

1) Anyone even thinking about buying one before E3 will now wait for the price drop, costing Sony $100 more loss on each system

2) IF (and it is a huge IF) Microsoft or even Nintendo were contemplating a price drop, it now gives them fair warning and may push them even further to make their system more attractive with a much lower price.[/QUOTE]There are many consumers who don't even read the internet.
[quote name='zewone']You think that matters to consumers?

They don't give a shit about why one system has more and better games, but just the fact that it has them is why they are going to pick one system over the other.[/QUOTE]
Spoken like a true 360 fanboy.
 
[quote name='The Mana Knight']
Spoken like a true 360 fanboy.[/quote]
What? Zewone is completely right, people compare things by what is currently available, not by comparing what was available a certain amount of months after each console launch.
 
[quote name='The Mana Knight']

Spoken like a true 360 fanboy.[/QUOTE]

:lol: at The Mana Knight for calling someone else a fanboy.
 
[quote name='NamPaehc']The part about the 360's titles... The 360 has been out a lot longer then the PS3 so of course it is going to have more titles right? It is crazy how people seem to forget that the system hasn't even been out a year yet. Look at this point in time in the 360's life and I'm sure that it is very similiar where more worthy titles are slowly starting to creap out.[/QUOTE]

Why does this arguement matter? If I had no system at this point and had to chose between a PS3 at $500 and an Elite 360 at $479....I would have to go 360 due to the library. It wouldn't matter to me how long each system has been out....It's about What they have now.

People railed on M$ for releasing the 360 when they did but It's looking like that move alone gave them a huge advantage over Sony. Sony needs to get on the ball a bit before I consider buying one.
 
No, really. Could part of the reason why this price drop happened be because they've stopped using the Emotion Engine in the American PS3s, and have started using emulation?
 
Do you think before you type?

The reasons M$ probably won't do a price-cut is because:
1. Warranty extension (at a cost of up to $1.15 billion) http://seattlepi.nwsource.com/business/1700AP_Microsoft_Xbox_Warranty.html?source=mypi
2. A price drop would spur more sales, but you're missing the point. They can sell cosoles without the price drop based on Halo 3 alone.
3. The game division IS losing money hand over fist: last quarter's loss was $315 million, quarter before that was $289 million. http://arstechnica.com/journals/thumbs.ars/2007/04/26/xbox-360-losses-shrink-but-so-do-shipments and http://www.gamasutra.com/php-bin/news_index.php?story=12541
4. Price drop following isn't the same this time around because the two machines are very different and the 360 is still cheaper.

So, just from a purely business viewpoint: the entertainment division will probably break even for the 3rd quarter this year because of Halo 3 sales. However, they have a $1.15 billion charge coming up. If you want to continue as a business, you have to turn a profit sometime. M$ won't fund a sinking ship forever.

[quote name='spoo']
  1. The warranty increase was nothing more then to save face before a class action suit.
  2. Halo 3 and a price drop would move even more.
  3. The game division is in the best condition since the Xbox brand came out.
  4. MS isn't going to wait until next year for a price drop if Sony drops the PS3 price. The only time MS hasn't followed suit after a Sony price drop is when the PS2 dropped to $130 from $150 price right before the 360 came out. They will follow suit and are waiting for Sony to make their first move.
[/quote]
 
[quote name='Foolman']What? Zewone is completely right, people compare things by what is currently available, not by comparing what was available a certain amount of months after each console launch.[/quote]

Okay so even though you guys are picking and choosing what to quote and address...That statement is a little funny. I mean, look through this thread. People have said, "I'd buy maybe if/when MGS/FF" come out. And don't tell me the ablity to play Halo 3 exclusively on the 360 wasn't a factor for a bunch of 360 owners when they got the systems. Then there are the people waiting for a price drop or game bundles. All those cases look towards the future and not currently.

[quote name='lowgear26']Why does this arguement matter? If I had no system at this point and had to chose between a PS3 at $500 and an Elite 360 at $479....I would have to go 360 due to the library. It wouldn't matter to me how long each system has been out....It's about What they have now.[/quote]

Again, picking and choosing. :roll: What about a $600 360 and a $400 PS3? Because, if you go back look at what I was addressing you would see the hypothetical scenario -Never4ever- came up with. It is useless to discuss now but I was trying to point out flaws in his statement.
 
am i the only one don't want to see a price drop this quick? call me a sour puss, because i got my PS3 back in Jan for $560 (with extra controller and Genju). It was a descent deal then, but now? Damn... $500 and with 5 BDs? Almost want to double dip...
 
[quote name='Rasen']No, really. Could part of the reason why this price drop happened be because they've stopped using the Emotion Engine in the American PS3s, and have started using emulation?[/quote]
Yes, that and the price of the Blue-Ray diode costing less make up a huge reason why they would cut the price. Granted they're not making any money off the hardware, but they may not be losing any more than when they first went into production. If you want to get a unit with the EE, pick one up soon.

The more units Sony can get into the household the more potential there is to recoup the lost money on a) software licensing and b) Blue-Ray sales (even if these sales are indirect via rentals).

---------
As for Microsoft dropping the price on the 360, I doubt it at this point. They're gaining ground and making a shit-ton of money from licensing. Even if the hardware isn't profitable yet they're still making their dollars back in software sales and XBL downloads. Peter Moore's reaction to the PS3 price drop will most likely be similar to everyone elses: "It's about time Sony realized their product was overpriced and they made the right move". MS doesn't really have anything to fear from Sony, even with a $100 price cut; in fact, the price cut will do little more (at this point) than raise an eyebrow. The kicker is if Sony can open the flood gates on exclusive content for the PS3 along WITH the drop announcement.
 
[quote name='NamPaehc']Okay so even though you guys are picking and choosing what to quote and address...That statement is a little funny. I mean, look through this thread. People have said, "I'd buy maybe if/when MGS/FF" come out. And don't tell me the ablity to play Halo 3 exclusively on the 360 wasn't a factor for a bunch of 360 owners when they got the systems. Then there are the people waiting for a price drop or game bundles. All those cases look towards the future and not currently.
[/quote]
If/when? So they may be looking at buying that system, but they won't actually buy it til the system comes out. And I bet many of those people waiting for Halo 3 to come out, either waited/are waiting or bought their 360 so they can play other games in the meantime. And yes, I know you were just trying to clarify someone else's post, which is why I didn't respond to you and just responded to Mana Knight.
 
[quote name='Serpentor']Now, if the newer PS3s don't come with the Emotion Engine, i think my PS3 is still a better deal :)[/quote]
That depends, do you consider the ability to play the games encompassed in the 30% compatability loss when moving to software emulation worth $100? I would speculate that a majority of those games are ones that you never would have played on the PS2, let alone PS3. I could be wrong, and if I am then you are correct, the $100 is worth it for you.

I would love to see Phil come out at Sony's Press Conference and blatantly say "We fucked up, and we're sorry ... as a token to the gaming public we will be dropping the price of the PS3 to $499 on Thursday 7-12"
 
[quote name='The Mana Knight']There are many consumers who don't even read the internet.
[/quote]

True--but there are many more who do. And those who read the internet tell their friends who do not read the internet to wait on buying a system because the price will drop in a week, and so on. The word gets out somehow, some way.

Like I said, I think it's a good move by Sony--I got mine 3 months ago for $300 from a friend and after having it for awhile, I decided I probably would have paid $500 for it. Unfortunately for Sony, this news got out early and it will cost them some money in the short term.
 
I think the PS3 will end up like the PSP-- higher end, underrated, and lambasted for not exploding the market like Nintendo, but still doing well on normal terms.
 
[quote name='Plinko']Like I said, I think it's a good move by Sony--I got mine 3 months ago for $300 from a friend and after having it for awhile, I decided I probably would have paid $500 for it. Unfortunately for Sony, this news got out early and it will cost them some money in the short term.[/quote]

This is true Plinko, but I don't think it'll be as devistating as it could be. They're not pushing but 60 - 80K units per month, so that's about 20K per week; let's say that 60% of the people hear this news so that drops this week's sales to 8k. Now, once the price drop is announced there is a good chance that sales may double for that week making it 40k in unit sales. At that point they may be lagging behind in true profit from the previous weeks, but if the doubling trend were to continue they would start to see (as I previously mentioned) the BR and software sales start to increase.

When I get mine, chances are I'll be picking up R:FoM along with it; so add me to the software profits.
 
[quote name='WebScud']If this plays out, does anyone think think there will be a $599 version with a monster HDD?[/quote]No.
 
People like to bash the PS3 and praise the 360 and Wii but, I've had a Wii since early December and a PS3 for a month, and I've already played the PS3 more total hours than the Wii.
 
[quote name='ispeshaled']This just in...

http://uk.reuters.com/article/technology-media-telco-SP/idUKT4990520070706?feedType=RSS

What gives?[/quote]

"At present we have no plans," to cut the PS3 price, Ryoji Chubachi told Reuters in an interview."
Click to expand...

Yeah, but next Wednesday, that will be a different story.

And as chief executive officer at CAGCAST, an online game retailer in Tokyo, I declare this price drop to be awesome!
http://www.bloomberg.com/apps/news?pid=20601101&sid=avaBEItJZtRo&refer=japan
 
[quote name='Dezuria']People like to bash the PS3 and praise the 360 and Wii but, I've had a Wii since early December and a PS3 for a month, and I've already played the PS3 more total hours than the Wii.[/quote]

I'm puzzled as to why you decided to post this in this thread, considering it has nothing to do with anything.
 
[quote name='Plinko']I'm puzzled as to why you decided to post this in this thread, considering it has nothing to do with anything.[/QUOTE]

I was uh.. replying to posts that I saw in a vision, but have not yet been posted? ;)
 
[quote name='jeffreyjrose']Do you think before you type?

The reasons M$ probably won't do a price-cut is because:
1. Warranty extension (at a cost of up to $1.15 billion) http://seattlepi.nwsource.com/business/1700AP_Microsoft_Xbox_Warranty.html?source=mypi
2. A price drop would spur more sales, but you're missing the point. They can sell cosoles without the price drop based on Halo 3 alone.
3. The game division IS losing money hand over fist: last quarter's loss was $315 million, quarter before that was $289 million. http://arstechnica.com/journals/thumbs.ars/2007/04/26/xbox-360-losses-shrink-but-so-do-shipments and http://www.gamasutra.com/php-bin/news_index.php?story=12541
4. Price drop following isn't the same this time around because the two machines are very different and the 360 is still cheaper.

So, just from a purely business viewpoint: the entertainment division will probably break even for the 3rd quarter this year because of Halo 3 sales. However, they have a $1.15 billion charge coming up. If you want to continue as a business, you have to turn a profit sometime. M$ won't fund a sinking ship forever.[/QUOTE]

  1. Fair enough of a reason but they are taking the hit all at once for this quarter. It isn't going to cost them a billion dollars every 3 months.
  2. MS isn't selling as many Xbox 360's as they would like: http://www.gamasutra.com/php-bin/news_index.php?story=14580 Halo will move consoles no doubt but will it be as many as MS would like to move without a price drop?
  3. The loosing money argument can go both ways. Sony is loosing a hell of a lot more money on the PS3 then MS is loosing on the 360. Sony also has a cash cow in that gaming division called the PS2. Sony is having a price drop even with a $1.97 billion loss last year because they lose money on the PS3. http://biz.gamedaily.com/industry/feature/?id=16171
  4. I don't see it that way MS will stay their distance from the PS3 price as long as they can. The only reason the 360 hasn't had a price drop yet is because of the high PS3 price. The other reason is in my 2nd point, MS hasn't moved enough units to get rid of the rest of the old expensive chips. I am sure their plan was to have a price drop as soon as they could get the new cheaper chips in the consoles.

This argument can go back and forth. Obviously having or not having a price drops has its own pros and cons.

The main point is that MS is in the same boat as Sony, they are not selling enough units and MS has always followed suit with a Sony price drop.
 
Yep, hardware makers can't announce price drops until they happen, only because it prevents people from buying the console until the drop happens.

One thing others are forgetting is that with this move they may actually secure the exclusive on FF13 and MGS4.

There's also plenty of new info coming out for both systems this E3, and unless MS is showing something amazing and new, they've mainly got Halo 3, and various other shooters (besides Mass Effect and Lost Odyssey). If Sony can find a way to trump that, perhaps if Killzone 2 looks and plays amazing, then on top of that showcase their wider variety of games like GoW3 and such, it should be very interesting.

The $100 price drop really puts this in the realm of purchase for me The bluray will get use in my home, along with built in HDMI port, built in wifi, etc...
 
One thing's for sure, July NPDs are going to be VERY interesting.

I'm predicting a PSP-drop similar spike for a month, followed by >100k months to Christmas, where they'll reach for 300k.
 
My guess is that microsoft will offer up a $400 Elite, minus the black color.
Perhaps drop the core system and have a $300 Premium.

Since the video marketplace seems to be doing very well, It's in microsofts best interest to sell systems with a hard drive.
 
[quote name='jer7583']One thing's for sure, July NPDs are going to be VERY interesting.

I'm predicting a PSP-drop similar spike for a month, followed by >100k months to Christmas, where they'll reach for 300k.[/QUOTE]


Probably won't catch on until August if the drop is right after E3. I don't think this will send that much of a surge until the high profile games start coming out though/ They need to pimp the hell out of Lair, Ratchet, Drake, and Heavenly Sword along with the new price. $499 is still pretty damn expensive...but I could see it pushing a lot of people who are into blu-ray and upscaled DVDs to buy one (since Blu-ray player + a high quality upscaling dvd player would run you close to $1000...and the ps3 is both in 1. it would make no sense not to buy it if you were looking for either.)
 
And as chief executive officer at CAGCAST, an online game retailer in Tokyo, I declare this price drop to be awesome!
Click to expand...

The online deals at CAGCAST have been lacking, although their spokesman is clearly a bald Adonis
 
[quote name='CheapyD']And as chief executive officer at CAGCAST, an online game retailer in Tokyo, I declare this price drop to be awesome!
http://www.bloomberg.com/apps/news?pid=20601101&sid=avaBEItJZtRo&refer=japan[/QUOTE]

I always knew Wombat slept his way to the top, but it seems so much more sensible now.

As for the price drop, good for Sony. People are going to continue to be up in arms about it, and insist that the PS3 is dead, or too expensive, and has no games coming out for it - they're the ones who will ignore Heavenly Sword, Lair, and the Like, and instead bray about Bioshock and Halo 3. It's an intentional blindness that is rather annoying, but only gets in the way of their own enjoyment. The PS3 was nice at $600, and is vastly nicer at $500. You're welcome to disagree with that, as many of you do...but if you do, why do you bother complaining about it yet again? Go enjoy what it is you own, and cease grousing about that which you don't.
 
[quote name='CheapyD']And as chief executive officer at CAGCAST, an online game retailer in Tokyo, I declare this price drop to be awesome![/quote]

Too funny. :D
 
so if i walk into Best buy and buy a ps3 at the current price, can i come back when the price drops and get the difference?
 
[quote name='Wez455']so if i walk into Best buy and buy a ps3 at the current price, can i come back when the price drops and get the difference?[/QUOTE]

There shouldn't be any problem with that.
 
Regardless, this price drop hints that Sony is in Panic Mode. While it will probably have a great library in the long term.....short term they are hurting bad.

While the wii is more gimmicky than powerful, people love it and the hype is still huge. M$ has the marketplace rolling and a lot of Titles coming before the end of the year that look great.

This has to be the first time Sony is worried about the video gaming part of their business.
 
[quote name='lowgear26']Regardless, this price drop hints that Sony is in Panic Mode. While it will probably have a great library in the long term.....short term they are hurting bad.

While the wii is more gimmicky than powerful, people love it and the hype is still huge. M$ has the marketplace rolling and a lot of Titles coming before the end of the year that look great.

This has to be the first time Sony is worried about the video gaming part of their business.[/QUOTE]


Oh, but just wait until their justification at E3-- "We felt like it was unfair for the other companies to compete with the PS3, so we gave them a little head start with the $600 price point. Now it's for real. yeah...that's the ticket..."
 
[quote name='lowgear26']Regardless, this price drop hints that Sony is in Panic Mode. While it will probably have a great library in the long term.....short term they are hurting bad.

While the wii is more gimmicky than powerful, people love it and the hype is still huge. M$ has the marketplace rolling and a lot of Titles coming before the end of the year that look great.

This has to be the first time Sony is worried about the video gaming part of their business.[/quote]

Umm, how is this panic mode?
This is the natural course of things.

The original PSX, the PS2, and the XBOX all dropped $100 after a similar amount of time. I'll get the dates in a second.
 
[quote name='dallow']Umm, how is this panic mode?
This is the natural course of things.

The original PSX, the PS2, and the XBOX all dropped $100 after a similar amount of time. I'll get the dates in a second.[/QUOTE]

When has the 360 dropped?....or the Wii? This after Sony claims they are losing their ass selling it at $600. This seems a little Rash don't you think?
 
[quote name='lowgear26']When has the 360 dropped?....or the Wii? This after Sony claims they are losing their ass selling it at $600. This seems a little Rash don't you think?[/quote] I didn't say the 360. (and never mind the PSX and PS2, i was mistaken, but correct about the XBOX, i think MS had more reason to panic though)

Xbox:
North America

* US$299 (November 15, 2001, Launch Price) (CAD$449)
* US$199 (May 15, 2002) (CAD$299)
* US$179 (May 14, 2003) (CAD$249)
* US$149 (March 29, 2004) (CAD$199)
 
[quote name='dallow']So everyone pretty much feels the price drop is a bad thing, eh?[/QUOTE]

I'm not sure how it can be. It'll sell more units for Sony. It's cheaper for me to buy. It'll eventually help the other consoles along the road to cheapness, and that's good for people who don't have them. Yeah, maybe one could quibble about what they're cutting to create the drop, and that this particular drop probably doesn't mean much for the long term prospects of the console, but it's still better than it was a week ago, right?

[quote name='Apossum']I think the PS3 will end up like the PSP-- higher end, underrated, and lambasted for not exploding the market like Nintendo, but still doing well on normal terms.[/QUOTE]

*ding ding ding*

Give the man a cookie.

Of course, I might take that cookie back if we get to the nitty-gritty of just how much it's underrated, or if that even matters (the Dreamcast was underrated, the GC was underrated), but it's a big buttery sugar cookie, and I can't stand them, so let's just turn a blind eye to that topic, shall we?

[quote name='mykevermin']People are going to continue to be up in arms about it, and insist that the PS3 is dead, or too expensive, and has no games coming out for it - they're the ones who will ignore Heavenly Sword, Lair, and the Like, and instead bray about Bioshock and Halo 3. It's an intentional blindness that is rather annoying, but only gets in the way of their own enjoyment.[/QUOTE]

Well, to be fair, as much as I like to laud the few products with even a faint whiff of effort or creativity in this industry, I don't know that what you're talking about is unreasonable. Halo 3 and BioShock are relatively proven products. Warhawk, Lair, Heavenly Sword, Drake, LittleBigPlanet, etc. are not. I fully admit that any or all of these games could turn out to be amazing, but the truth is they could also be utter crap, and it seems pretty prudent to me to not assume the former, particularly with the investment at stake. So I'm sorry if you think people are willfully turning a blind eye to the greatness of Heavenly Sword, but I've seen Killzone and Sudeki and Starfox Adventures and all kinds of other games that got massive second-party development support and marketing pushes come and go, falling far short of the buzz, but if people are starting to remember that, it's far from a bad thing.
 
yah you didn't say the 360 I know, but This is the Current wave of systems and Sony has dropped theirs Already while the other 2 have not. Like I said, this is very early to do this and with the system losing money like it is already.....why cause more loss on it?
 
The move does reek of desperation but if more people buy the console, that's cool with me. I'm not going to ever say a price drop is a bad thing. It's a great piece of hardware and a good Blu Ray player. No complaints yet. Can't wait for the great games to come out later this year but I'm having fun with the PSN games, Virtua Fighter 5, and some PS2 fighting games.
 
[quote name='dallow']I didn't say the 360. (and never mind the PSX and PS2, i was mistaken, but correct about the XBOX, i think MS had more reason to panic though)

Xbox:
North America

* US$299 (November 15, 2001, Launch Price) (CAD$449)
* US$199 (May 15, 2002) (CAD$299)
* US$179 (May 14, 2003) (CAD$249)
* US$149 (March 29, 2004) (CAD$199)[/QUOTE]

Why did the Xbox drop in price then? It was due to the fact that the PS2 was Far superior sales wise to them and M$ had to boost their own. Sony doing this possibly foreshadowing how this Gen will be. I think it can only help them,yet at the same time, It seems a bit early for a price drop to me.
 
[quote name='lowgear26']yah you didn't say the 360 I know, but This is the Current wave of systems and Sony has dropped theirs Already while the other 2 have not. Like I said, this is very early to do this and with the system losing money like it is already.....why cause more loss on it?[/quote]Because no system in recent history (with the exception of the Wii now) makes money on hardware in the first few years of it's life.
Software is the key, and getting the consoles into peoples homes, buidling the userbase, is the first step.

[quote name='trq']I'm not sure how it can be. It'll sell more units for Sony. It's cheaper for me to buy. It'll eventually help the other consoles along the road to cheapness, and that's good for people who don't have them. Yeah, maybe one could quibble about what they're cutting to create the drop, and that this particular drop probably doesn't mean much for the long term prospects of the console, but it's still better than it was a week ago, right?[/QUOTE]I only said that because still people came into this thread to simply complain as if a price drop isn't good.

They're not cutting anything out of the PS3 right now. All US systems will have the EE chip. The original plan was for them not to have them in the first place. Eventually those units will make it here.
 
The price drop is good for us consumers; now I'm actually considering buying a PS3 by year's end (that is if Metal Gear is released before Christmas).

But for Sony, the whole blu-ray strategy was an epic gamble, and so far that gamble is not paying off.
 
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